The average sales price of a new apartment sold in the Kansai region, which includes the city of Osaka, as of November 2019 was ¥35,320,000 (about $325,000). The average price per square meter was ¥628,000 (about $5,779), or about $536 per square foot. The Kansai region consists of the prefectures of Nara, Wakayama, Kyoto, Osaka, Hyogo and Shiga.
This is according to a recent report by the Real Estate Economic Institute, a Tokyo-based real estate think tank.
The key takeaways from the report were that November sale prices increased just 1.3% YoY and fell year-on-year for the first time in four months. The average sales price per square meter fell 11.2% YoY. November was the first time the per-sqm price has fallen in three months. The October 1st consumption tax increase (and anticipatory buying prior to the tax increase) were important factors in the November sales figures.
Average Sales Price of an Apartment in Kansai – By City & Prefecture
The number in parentheses is the price per sqm.
- Osaka City: ¥31,330,000 (¥761,000 per-sqm)
- Osaka Prefecture, excluding Osaka City: ¥44,720,000 (¥612,000 per-sqm)
- Kobe City: ¥26,930,000 (¥580,000 per-sqm)
- Hyogo Prefecture, excluding Kobe City: ¥44,720,000 (¥618,000 per-sqm)
- Kyoto City: ¥36,000,000 (¥580,000 per-sqm)
- Nara Prefecture: ¥32,600,000 (¥437,000 per-sqm)
- Shiga Prefecture: ¥36,120,000, (¥492,000 per-sqm)
Supply down year-on-year
Developers released far fewer units for sale in November compared to last year. In November, 1,492 newly constructed units were released for sale, a year-on-year drop of 42.3%, but an increase of 17.4% compared to October.
Was the end of 2019 a buyers market in Kansai?
The contract rate is the number of sales contracts divided by the number of units released for sale for the period. A contract rate of 70% is considered a healthy buyers market. The “first month’s” contract rate is the contract rate for properties sold in the first month they were released for sale.
November saw the contract rate crash in Kansai, falling 14.3 points YoY to 60.1% and down 13.7% compared to October. This was the first time in six months that the contract rate has fallen below the 70% mark.
FAQs About Buying Property in Japan
Can a foreigner buy property in Japan?
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What is the process for buying a property in Japan?
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For information about purchase and brokerage fees: Breakdown of real estate purchase fees and taxes in Japan
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- Real Estate Investment Support Services by Real Estate Japan Inc.
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Lead photo: Dontonbori, Osaka, Japan. hans-johnson via Flickr.